(a) 
Authority of city treasurer.
The city treasurer shall serve as the chief accounting and check-issuing officer of the city and shall supervise the accounting division.
(b) 
Drawing and signing of checks.
The city treasurer shall draw all checks. No check shall be drawn upon any fund or for any purpose in excess of the amount appropriated therefor. Three (3) council members shall sign all checks personally. In the event three signatures cannot be found, documented voice confirmation will be accepted.
(c) 
Appointment of city treasurer; duties.
(1) 
Appointment.
The city treasurer shall be appointed by the city council.
(2) 
Duties.
The city treasurer shall be responsible for the activities of the treasury division, and shall have and exercise all powers and perform all duties provided or prescribed by state law, the provisions of this code or other ordinances of the city.
(3) 
Collection and disbursement of moneys.
The city treasurer shall collect and receive all moneys payable to the city, and disburse the same only on checks drawn by order of the city council and signed by three (3) council members.
(Ordinance 9000 adopted 2/19/06)
(a) 
Title, purpose and scope.
(1) 
Title.
This section shall be commonly cited as the credit card ordinance.
(2) 
Purpose.
This section authorizes and regulates the city’s acceptance of payments by credit cards for fees, fines, court costs, or other charges.
(3) 
Scope.
This section applies to all fees, fines, court costs, or other charges imposed or collected by the city, unless otherwise specifically provided by separate ordinance.
(b) 
Definitions.
Words and phrases used in this section shall have the meanings set forth in this subsection. Words and phrases not defined shall be given their common, ordinary meaning unless the context clearly requires otherwise. When not inconsistent with the context, words used in the present tense shall include the future tense, words in the plural number shall include the singular number (and vice versa), and words in the masculine gender shall include the feminine gender (and vice versa). The word “shall” is always mandatory, while the word “may” is merely directory. Headings and captions are for reference purposes only.
Credit card
means a card, plate, or similar device used to make purchases on credit or to borrow money.
(c) 
Administration and fees.
(1) 
Acceptance of payment.
The city manager, city secretary, municipal court clerk, and their designees are authorized to accept payment by credit card of any fee, fine, court cost, or other charges imposed or collected by the city.
(2) 
Processing fee.
(A) 
The city shall assess and collect a processing fee in an amount that is reasonably related to the expense incurred by the city in processing payments by credit card.
(B) 
The processing fee shall not exceed an amount equal to five percent (5%) of the amount of the fee, fine, court costs or other charge being paid.
(C) 
The amount of the processing fee shall be as set forth in the fee schedule in appendix A of this code.
(3) 
Service charge for dishonored payment.
(A) 
The city shall assess and collect a service charge if for any reason a payment by credit card is not honored by the credit card company on which the funds are drawn.
(B) 
The service charge imposed by this subsection shall be in addition to the original fee, fine, court cost or other charge and the processing fee.
(C) 
The amount of the service charge shall be the same as that charged for the collection of a check drawn on an account with insufficient funds.
(D) 
The amount of the service charge shall be as set forth in the fee schedule in appendix A of this code.
(Ordinance 9020 adopted 9/6/07; Ordinance adopting Code)
In accordance with article 103.0031 of the Texas Code of Criminal Procedure, there is hereby imposed an additional fee of thirty percent (30%) on all debts and accounts receivable, i.e.: fines, fees, court costs, restitution, and other debts that are more than sixty (60) days past due and have been referred to a private law firm for collections.
(Ordinance M18-02 adopted 2/1/18)
It is the policy of the city that the administration of its funds and the investment of those funds shall be handled as its highest public trust. Investments shall be made in a manner which will provide the maximum security of principal invested through limitations and diversification while meeting the daily cash flow needs of the city and conforming to all applicable state and city statutes governing the investment of public funds. The receipt of a market rate of return will be secondary to the requirements for safety and liquidity. It is the intent of the city to be in complete compliance with local and state law. The earnings from investment will be used in a manner that best serves the public trust and interests of the city.
(Ordinance 9019, att. A, sec. I, adopted 9/6/07)
This investment policy applies to all the financial assets and funds held by the city. These funds are defined in the city’s annual financial report and include:
(1) 
The general fund.
(2) 
Special revenue funds.
(3) 
Debt service funds.
(4) 
Capital project funds.
(5) 
Proprietary funds.
(6) 
All other funds.
(Ordinance 9019, att. A, sec. II, adopted 9/6/07)
It is the policy of the city that all funds shall be managed and invested with four primary objectives, listed in order of their priority: safety, liquidity, diversification and yield. These objectives encompass:
(1) 
Safety of principal.
Safety of principal is the foremost objective of the city. Investments of the city shall be undertaken in a manner that seeks to insure the preservation of capital in the overall portfolio. To obtain this goal, diversification is required in the portfolio’s composition. The suitability of each investment decision will be made on the basis of these objectives.
(2) 
Liquidity.
The city’s investment portfolio will remain sufficiently liquid to enable it to meet all operating requirements which might be reasonably anticipated.
(3) 
Diversification.
Diversification of the portfolio will include diversification by maturity and market sector and may include the use of a number of broker/dealers for diversification and market coverage. Competitive bidding will be used on each sale and purchase.
(4) 
Yield.
The city’s investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the city’s risk constraints and the cash flow of the portfolio. “Market rate of return” may be defined as the average yield of the current three-month U.S. Treasury Bill or such other index that most closely matches the average maturity of the portfolio.
(5) 
Cash management.
Effective cash management is recognized as essential to good fiscal management. Cash management is defined as the process of managing monies in order to ensure maximum cash availability. The city shall maintain a comprehensive cash management program which includes collection of accounts receivable, prudent investment of its available cash, disbursement of payments in accordance with invoice terms and the management of banking services.
(Ordinance 9019, att. A, sec. III, adopted 9/6/07)
(a) 
The mayor, acting on behalf of the city council, is designated as the investment officer of the city and is responsible for investment management decisions and activities.
(b) 
The city council is responsible for considering the quality and capability of staff, investment advisors, and consultants involved in investment management and procedures. All participants in the investment process shall seek to act responsibly as custodians of the public trust.
(c) 
The investment officer shall develop and maintain written administrative procedures for the operation of the investment program which are consistent with this investment policy and state law. Procedures will include reference to safekeeping, require and include PSA master repurchase agreements, wire transfer agreements, banking services contracts, and other investment related activities.
(d) 
The investment officer shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials and staff.
(e) 
No officer or designee may engage in an investment transaction except as provided under the terms of this policy and the procedures established by the investment officer and approved by the city council.
(Ordinance 9019, att. A, sec. V, adopted 9/6/07)
(a) 
Standard of prudence.
The standard of prudence to be used in the investment function shall be the “prudent person” standard and shall be applied in the context of managing the overall portfolio. This standard states: “Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion, and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the expected income to be derived.”
(b) 
Limitation of personal liability.
The investment officer and those delegated investment authority under this policy, when acting in accordance with the written procedures and this policy and in accord with the prudent person rule, shall be relieved of personal responsibility and liability in the management of the portfolio.
(c) 
Ethics and conflicts of interest.
(1) 
City staff involved with the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program, or which could impair the ability to make impartial investment decisions. City staff shall disclose to the mayor and city council any material financial interests in financial institutions that conduct business with the city and they shall further disclose positions that could be related to the performance of the city’s portfolio. City staff shall subordinate their personal financial transactions to those of the city, particularly with regard to timing of purchases and sales.
(2) 
An investment officer of the city who has a personal business relationship with an organization seeking to sell an investment to the city shall file a statement disclosing that personal business interest. An investment officer who is related within the second degree by affinity or consanguinity to an individual seeking to sell an investment to the city shall file a statement disclosing that relationship. A statement required under this subsection must be filed with the state ethics commission and the governing body of the city.
(Ordinance 9019, att. A, sec. VI, adopted 9/6/07)
(a) 
Establishment; annual review.
The investment officer shall establish a system of written internal controls which will be reviewed annually with the independent auditor of the city. The results of this review shall be reported to the city council.
(b) 
Objectives.
The controls shall be designed to prevent loss of public funds due to fraud, theft, loss, misuse, employee error, misrepresentation by third parties, unanticipated market changes, or imprudent actions by employees of the city. The internal control structure shall be designed to provide reasonable assurance that these objectives are met. The concept of reasonable assurance recognizes that:
(1) 
The cost of a control should not exceed the benefits likely to be derived; and
(2) 
The valuation of costs and benefits requires estimates and judgments by management.
(c) 
Cash flow forecasting.
Cash flow forecasting is designed to protect and sustain cash flow requirements of the city. Supplemental to the financial and budgetary systems, the investment officer will maintain a cash flow forecasting process designed to monitor and forecast cash positions for investment purposes. Cash flow will include the historical researching and monitoring of specific cash flow items, payables and receivables as well as overall cash position and patterns.
(Ordinance 9019, att. A, sec. VII, adopted 9/6/07)
(a) 
Acceptable investments.
(1) 
Acceptable investments under this policy shall be limited to the instruments listed below. The investments are to be chosen in a manner which promotes diversity or market sector and maturity. The choice of high-grade government investments and high-grade money market instruments is designed to assure the marketability of those investments should liquidity needs arise.
(A) 
Obligations, including letters of credit, of the United States government, its agencies and instrumentalities, and government sponsoring [sponsored] enterprises, not to exceed two years to stated maturity;
(B) 
Fully insured or collateralized certificates of deposit from a bank domiciled in the state and under the terms of a written depository agreement with that bank, not to exceed one year to the stated maturity;
(C) 
Banker’s acceptances as defined by section 2256.012, Texas Public Funds Investment Act, not to exceed 270 days to stated maturity;
(D) 
Commercial paper rated A-1/P-1 or the equivalent by at least two nationally recognized rating agencies, not to exceed 270 days to stated maturity;
(E) 
Repurchase agreements and reverse repurchase agreements, not to exceed 180 days to stated maturity, provided an executed PSA master repurchase agreement is on file with the city and the counter-party bank or primary dealer;
(F) 
No-load SEC registered money market funds, rated AAA, each approved specifically before use by the city council. No more than 15% of the entity’s monthly average fund balance, excluding bond proceeds and reserves and other funds held for debt service, may be invested in money market funds;
(G) 
Local government investment pools as defined by state law; and
(H) 
No-load mutual funds registered with the SEC, rated AAA by at least one nationally recognized rating agency, investing exclusively in this policy’s authorized investments, and having a weighted average maturity of not more than two (2) years. No more than 10% of the entity’s monthly average fund balance may be invested in these funds.
(2) 
If additional types of securities are approved for investment by public funds by state statute, they will not be eligible for investment by the city until this policy has been amended and the amended version approved by the city council.
(b) 
Competitive bidding requirement.
All securities, including certificates of deposit, will be purchased or sold only after three (3) offers/bids are taken (orally, in writing, electronically, or any combination thereof) to verify that the city is receiving fair market value/price for the investment.
(c) 
Delivery versus payment.
All security transactions, including collateral for repurchase agreements, entered into by the city, shall be conducted on a delivery versus payment (DVP) basis.
(Ordinance 9019, att. A, sec. VIII, adopted 9/6/07)
(a) 
All investments made by the city will be made through either the city’s banking services bank or a primary dealer.
(b) 
The city shall maintain a list of financial institutions which are authorized to provide investment services. Banks shall continuously provide their most recent “Consolidated Report of Condition” (call report). At a minimum the city shall conduct an annual evaluation of each bank’s creditworthiness to determine whether it should be on the “Qualified Institution” listing.
(c) 
Securities broker/dealers not affiliated with a bank shall be required to be classified as reporting dealers affiliated with the New York Federal Reserve as primary dealers, and meet certain other criteria as determined by the investment officer. Only brokers/dealers with an office in Bell County shall be selected. A list of no more than five (5) authorized primary dealers will be established and maintained. The following criteria must be met by those firms on the list: provision of an audited financial statement for the most recent period, proof of certification by the National Association of Securities Dealers (NASD), proof of current registration with the state securities board, and completion of a city questionnaire.
(d) 
Every dealer with whom the city transacts business will be provided a copy of this investment policy to assure that they are familiar with the goals and objectives of the investment program.
(e) 
As investments are made, the investment officer shall rotate from the authorized bidder’s list for bids/offers. An attempt will be made to alternate all names on the list.
(Ordinance 9019, att. A, sec. IX, adopted 9/6/07)
(a) 
Diversification by security type and issuer.
It is the policy of the city to diversify its investment portfolio. Invested funds shall be diversified to minimize risk or loss resulting from over-concentration of assets in a specific maturity, specific issuer, or specific class of securities. Diversification strategies shall be established and periodically reviewed. At a minimum, diversification standards by security type and issuer shall be:
(1) 
U.S. Treasuries and securities with the U.S. government’s guarantee - 100%.
(2) 
U.S. government agencies and instrumentalities - not to exceed 50%.
(3) 
Fully insured or collateralized CDs - not to exceed 30%.
(4) 
Banker’s acceptances - not to exceed 15%.
(5) 
Commercial paper - not to exceed 25%.
(6) 
Maximum per CP issuer - not to exceed 10%.
(7) 
Repurchase agreements - 100%.
(8) 
Money market funds - 80% of operating funds.
(9) 
Local government investment pools - 100%.
(10) 
Mutual funds - not to exceed 15%.
(b) 
Diversification of maturities.
The investment officer shall be required to diversify maturities. The investment officer, to the extent possible, will attempt to match investments with anticipated cash flow requirements.
(c) 
Maturity dates.
Matching maturities with cash flow dates will reduce the need to sell securities prior to maturity, thus reducing market risk. Unless matched to a specific requirement, the investment officer may not invest any portion of the portfolio for a period greater than two (2) years.
(d) 
Maximum maturities.
The investment maturity schedule shall correspond with the city’s projected cash flow needs. Remaining stated maturities in investments purchased shall be no longer than two (2) years except as specifically authorized by the city council. Securities with maturities exceeding one year shall not exceed fifteen percent (15%) of the total portfolio.
(Ordinance 9019, att. A, sec. X, adopted 9/6/07)
(a) 
Safekeeping requirements.
The laws of the state and prudent treasury management require that all purchased securities be bought on a delivery versus payment basis and be held in safekeeping by either the city, an independent third party financial institution, or the city’s designated depository.
(b) 
Safekeeping arrangements.
All safekeeping arrangements shall be designated by the investment officer and an agreement of the terms executed in writing. The third party custodian shall be required to issue original safekeeping receipts to the city listing each specific security, rate, description, maturity, and CUSIP number. Each safekeeping receipt will be clearly marked that the security is held for the city or pledged to the city.
(c) 
Holding of certificates of deposit or demand deposits.
All securities pledged to the city for certificates of deposit or demand deposits shall be held by an independent third party bank. The safekeeping bank may not be within the same holding company as the bank from with the securities is pledged.
(d) 
Release or substitution of collateral.
The investment officer must approve release and/or substitution of collateral before such action is taken.
(e) 
Collateralization.
(1) 
The city requires all bank deposits to be federally insured or collateralized with securities approved for investment under section 1.05.038 of this policy. Bank demand deposits and certificates of deposit plus accrued interest up to $100,000.00 per bank do not need to be collateralized pursuant to this policy as long as FDIC insurance is provided.
(2) 
In order to anticipate market changes and provide a level of additional security for all funds, the collateralization level required will be 102% of the market value of the principal and accrued interest.
(Ordinance 9019, att. A, sec. XI, adopted 9/6/07)
(a) 
The investment officer shall submit quarterly and annual reports to the mayor and the city council containing sufficient information to permit an informed outside reader to evaluate the performance of the investment program.
(b) 
At a minimum, this report must:
(1) 
Describe in detail the investment position of the city on the date of the report;
(2) 
Be prepared jointly by all investment officers of the city;
(3) 
Be signed by each investment officer of the city;
(4) 
Contain a summary statement prepared in compliance with generally accepted accounting principles of each pooled fund group that states:
(A) 
Beginning market value for the reporting period;
(B) 
Additions and changes to the market value during the period;
(C) 
Ending market value for the period; and
(D) 
Fully accrued interest for the reporting period;
(5) 
State the book value and market value of each separately invested asset at the beginning and end of the reporting period by the type of asset and fund type invested;
(6) 
State the maturity date of each separately invested asset that has a maturity date;
(7) 
State the account or fund or pooled fund group in the city for which each individual investment was acquired; and
(8) 
State the compliance of the investment portfolio of the city as it relates to:
(A) 
The investment strategy expressed in the city’s investment policy; and
(B) 
Relevant provisions of the Texas Public Funds Investment Act, chapter 2256, Texas Government Code.
(Ordinance 9019, att. A, sec. XII, adopted 9/6/07)
The city will designate one banking institution through a competitive process as its central banking services provider at least every five years. This institution will be used for normal banking services including disbursements, deposits, lockbox, and safekeeping of securities. Other banking institutions from which the city may purchase certificates of deposit will also be designated after they provide their latest audited financial statements to the city.
(Ordinance 9019, att. A, sec. XIII, adopted 9/6/07)
The city’s investment policy shall be adopted by the city council. The policy shall be reviewed on an annual basis by the city council.
(Ordinance 9019, att. A, sec. XIV, adopted 9/6/07)